Core Insights - The performance of stablecoins is more influenced by transaction velocity than total market capitalization, as highlighted by Ripple Labs' RLUSD and Tether's USDT [1][3][5]. Group 1: Market Capitalization and Performance - Tether leads the stablecoin market with a market capitalization of $186 billion, having increased by 35% since the beginning of the year, and reported a profit of $10 billion in the first three quarters of 2025 [2][3]. - Circle's USDC has a market capitalization of $78.4 billion, up 78% by December 15, 2025, and a velocity of 56 [7][8]. - RLUSD, Ripple's stablecoin, has a market capitalization of $1.3 billion and a high velocity of 71, indicating efficient transaction use [1][5]. Group 2: Regulatory Developments - The signing of the GENIUS Act and Ripple's provisional approval for a national banking charter mark significant regulatory advancements for stablecoins [5][9]. - Circle's operating model aligns with the newly established federal regulations, enhancing investor confidence [7]. Group 3: Transaction Velocity - Tether's transaction velocity is reported at 166, making it a key player in global crypto trading [3]. - USD1, launched in April, achieved a velocity of 39 despite limited data, indicating strong initial performance [10][11]. - PayPal USD (PYUSD) has a velocity of 18, with its market capitalization growing from over $1 billion in June to $3.8 billion by December 15 [13]. Group 4: Unique Features and Strategies - USDe, backed by a delta-neutral strategy, has a market capitalization of $6.5 billion, but its reliance on derivatives can lead to volatility [17][18]. - USDS, rebranded from DAI, has a low velocity of 1, as it primarily serves as collateral in DeFi loans rather than circulating as cash [19][20].

Financial Performance - Sky Protocol's annualized net profit reached $168 million, a 24.4% year-over-year increase [1] - Operating expenses decreased by 61.5% [1] Stablecoin Performance - USDS stablecoin supply increased by 86% [1] Capital Allocation - Buybacks increased significantly from $367 thousand to $92.2 million [1]

Core Insights - The stablecoin market is projected to exceed $1 trillion in circulation by 2026, driven by institutional adoption, new yield-bearing tokens, and enhanced cross-border payment capabilities [4][5][17] - The current stablecoin market valuation stands at $310 billion, with Tether's USDT holding a dominant 60% market share [2] - Over 20% of active stablecoins are expected to offer embedded yield or programmability features, indicating a shift from static to yield-bearing stablecoins [3][4] Market Dynamics - Tokenized U.S. Treasuries have seen a significant rise, exceeding $3 billion in supply this year, reflecting strong institutional interest in yield-backed digital assets [1] - Circle processed over $12 trillion in on-chain transaction volume in 2023, highlighting the rapid integration of stablecoins into mainstream financial infrastructure [1] - The demand for high-yield, blockchain-settled assets is increasing, particularly for synthetic dollars that do not rely on physical dollars or government debt [5] Technological Advancements - Upgrades in major blockchains, including Bitcoin and Ethereum, have reduced transaction fees and increased speed, making stablecoins more practical for everyday use [6] - New stablecoin designs are emerging that integrate yield directly into balances, eliminating the need for users to switch between stablecoins and separate yield products [6] Regional Insights - In markets with high inflation, yield-bearing stablecoins are becoming essential for personal savings and small business treasury management [7] - Southeast Asia is witnessing a rise in crypto adoption, with stablecoins being accepted by over a million merchants in the Philippines [8] Regulatory Landscape - Regulatory clarity is expected to improve by 2026, with frameworks being developed globally to support stablecoin innovation [12][13] - New regulations may impose restrictions on interest distribution to retail users, necessitating more detailed reporting for yield-bearing products [10][11] Future Outlook - The stablecoin market is anticipated to mature, with more issuers going public and a surge in institutional adoption, as over 80% of banks now have a digital asset strategy [17] - The market is expected to see a bifurcation in foreign exchange (FX) rates as liquidity deepens, making stablecoin FX increasingly competitive with traditional fiat payments [15][16]

ICYMI: @SkyEcosystem's USDS holder base has grown ~500% since the start of the year. https://t.co/FTmjU6mrjLVance Spencer (@pythianism):I've gotten a few questions about which VCs own Sky given that there is no more vesting/unlocks/cliffsSold all- Paradigm (7%)- A16z (6%)- Bain (2-4%)- Syncracy (1%?)Sold most- Dragonfly (4-5%)- Parafi (3-4%)Afaik, Framework is the only VC that holds Sky in large size ...

RT Token Terminal 📊 (@tokenterminal)Fastest growing tokenized assets on @base, based on 30d growth (%) in market cap:1. USTBL by @spiko, +71.5%2. EURC by @circle, +21.6%3. EUTBL by Spiko, +20.8%4. USDS by @SkyEcosystem, +5.1%5. USDC by Circle, +4.6% https://t.co/SEOhSft111 ...

🟦🇪🇺 Base turning into the EURO chain?Token Terminal 📊 (@tokenterminal):Fastest growing tokenized assets on @base, based on 30d growth (%) in market cap:1. USTBL by @spiko, +71.5%2. EURC by @circle, +21.6%3. EUTBL by Spiko, +20.8%4. USDS by @SkyEcosystem, +5.1%5. USDC by Circle, +4.6% https://t.co/SEOhSft111 ...

Fastest growing tokenized assets on @base, based on 30d growth (%) in market cap:1. USTBL by @spiko, +71.5%2. EURC by @circle, +21.6%3. EUTBL by Spiko, +20.8%4. USDS by @SkyEcosystem, +5.1%5. USDC by Circle, +4.6% https://t.co/SEOhSft111 ...

RT Keel (@keel_fi)The fastest-growing Tokenized Asset on @solana over the last 30 days is $USDS. ...

Market Overview - The crypto market is experiencing "extreme fear" following a sell-off, with Bitcoin trading around $87,000, down from a high of $92,350 last week, indicating a lack of recovery and eroded investor confidence [1] - The altcoin market is also struggling, with several tokens, particularly privacy coins, posting losses of over 5% in the last 24 hours [2] Performance Metrics - Bitcoin has retraced almost the entire rally from November 21-28, underperforming U.S. equities, which saw the Nasdaq Composite Index rise by 6.6% during the same period [2] - Open interest in futures tied to Bitcoin (BTC), Ethereum (ETH), and XRP has declined by as much as 6% in the past 24 hours, reflecting diminished investor confidence [5] Volatility and Derivatives - Bitcoin's 90-day annualized basis has collapsed to cycle lows of around 4%-5%, while Ether's basis is nearing 3%-4%, indicating a significant drop in futures versus spot prices [5] - The 30-day implied volatility index for Bitcoin is rising relative to Wall Street's VIX index, suggesting heightened uncertainty in the crypto market [5] Altcoin Performance - The altcoin market continues to lag, with Ether and XRP each sliding by approximately 0.6% in 24 hours, while Bitcoin posted a slight gain of 0.75% [5] - Privacy coins, particularly Zcash (ZEC), have been severely impacted, with an 8% decline in the last 24 hours and a total drop of 33% over the past week [5] DeFi Interest - The "altcoin season" indicator remains stagnant at 24/100, indicating a preference for Bitcoin and select DeFi tokens despite the overall market decline [5] - SKY, formerly MKR, saw a 6.7% increase after announcing token buybacks, while the USDS token's market cap grew from $7.6 billion to $9.5 billion in two months, attracting DeFi interest [5]

May we ship you a weekly newsletter? 🚢Charts did what charts do but Solana’s ecosystem ran through the mud to deliver. Synergy architects and devs alike put in work and the sun rose on a new listing platform.Here's everything we remember that happened:📰 Headline News- @Sunrise_DeFi to debut Solana’s first ever day one listing on Solana with Monad- @Fidelity, @vaneck_us, @CanaryFunds and @21shares_us launched Solana ETFs- @HastraFi announced DeFi-ready RWAs with @Figure- @coinbase doubled down on Solana with ...